Mozambique’s natural gas production moves forward

The Coral South Floating Liquefied Natural Gas (FLNG) project could have huge benefits for the troubled Mozambican economy, says Standard Bank, one of its lenders.

The Coral South Floating Liquefied Natural Gas (FLNG) project, situated off the coast of Mozambique, is notable for several reasons. When it becomes operational in 2022, it will be the first ultra-deepwater FLNG facility in the world, and only the fifth FLNG project ever. It also represents Africa’s largest ever project finance deal, and the first project financing for a FLNG development.

Valued at an estimated US$8bn, the financing agreement closed in December 2017 and involved a vast array of parties – it was subscribed by 15 major international banks and guaranteed by five export credit agencies. Taken together, the largest lenders were Standard Bank and its 20% shareholder, the Industrial and Commercial Bank of China (ICBC).